AST term help for deductions of deposit

haveabreak

Hi all

My agent is providing an AST for new tenancy. It has the following term regarding the deductions from the deposit in the order listed. My question is does there need to be an order defined for deductions or is it better to have the "in the order listed" phrase removed - thus allowing the landlord to decide what the deduction is prioritised from the deposit (if any).

I ask because I just had a bad experience and evicted prior to this, and the rental arrears was well over the deposit amount plus the tenant left the place in a complete mess with unpaid water bills and council tax.

Thanks in advance.


AST terms: 

9.            DEALING WITH THE DEPOSIT

9.2.        After the Term the Landlord is entitled with the written consent of the Tenant, to deduct from the sum held as the Deposit any monies referred to in this Agreement. If more than one such deduction is to be made by the Landlord, monies will be deducted from the Deposit in the order listed.

9.6.        The Landlord may deduct monies from the Deposit to compensate the Landlord for losses caused for any or all of the following reasons:

a. any damage to the Property and/or the Contents caused by the Tenant or arising from any breach of the terms of this Agreement by the Tenant;

b. any damage caused or cleaning required as a result of any pets occupying the Property (whether or not the Landlord consented to its presence as set out in this Agreement;

c. any sum repayable by the Landlord or the Landlord’s Agent to the local authority where housing benefit or Local housing Allowance has been paid direct to the Landlord or the Landlord’s Agent by the local authority;

d. any other breach by the Tenant of the terms of this Agreement;

e. any instalment of the Rent which is due but remains unpaid at the end of the Term;

f. any unpaid account or charge for water including sewerage and environmental charges, electricity gas or other fuels used by the Tenant in the Property;

g. any unpaid council tax;

h. any unpaid telephone charges.

dimbo61

Are you a member of the nrla ?
If you can get a copy of the nrla tenancy agreement  and compare to the one from your agent.
Why ?
I feel the nrla has the best and most upto date documents for starting  a tenancy 

_Penny_Dreadful

haveabreak said:

Hi all

My agent is providing an AST for new tenancy. It has the following term regarding the deductions from the deposit in the order listed. My question is does there need to be an order defined for deductions or is it better to have the "in the order listed" phrase removed - thus allowing the landlord to decide what the deduction is prioritised from the deposit (if any).

I ask because I just had a bad experience and evicted prior to this, and the rental arrears was well over the deposit amount plus the tenant left the place in a complete mess with unpaid water bills and council tax.

Thanks in advance.


AST terms: 

9.            DEALING WITH THE DEPOSIT

9.2.        After the Term the Landlord is entitled with the written consent of the Tenant, to deduct from the sum held as the Deposit any monies referred to in this Agreement. If more than one such deduction is to be made by the Landlord, monies will be deducted from the Deposit in the order listed.

9.6.        The Landlord may deduct monies from the Deposit to compensate the Landlord for losses caused for any or all of the following reasons:

a. any damage to the Property and/or the Contents caused by the Tenant or arising from any breach of the terms of this Agreement by the Tenant;

b. any damage caused or cleaning required as a result of any pets occupying the Property (whether or not the Landlord consented to its presence as set out in this Agreement;

c. any sum repayable by the Landlord or the Landlord’s Agent to the local authority where housing benefit or Local housing Allowance has been paid direct to the Landlord or the Landlord’s Agent by the local authority;

d. any other breach by the Tenant of the terms of this Agreement;

e. any instalment of the Rent which is due but remains unpaid at the end of the Term;

f. any unpaid account or charge for water including sewerage and environmental charges, electricity gas or other fuels used by the Tenant in the Property;

g. any unpaid council tax;

h. any unpaid telephone charges.

You don't need to specify and order and frankly I don't see why you need to include an order.  The NRLA model agreement lists the sorts of things that could be deducted from the deposit i.e. damage to the property but it doesn't specify an order nor does the model AST agreement from the government. Items f, g and h are redundant in the agreement you've been given unless for some reason you are paying the council tax and utilities on behalf of the tenant otherwise it's down to the council or utility companies to chase the tenant for monies owed, not for you to deduct money from the deposit to pay the council or utility providers. 

haveabreak

_Penny_Dreadful said:

You don't need to specify and order and frankly I don't see why you need to include an order.  The NRLA model agreement lists the sorts of things that could be deducted from the deposit i.e. damage to the property but it doesn't specify an order nor does the model AST agreement from the government. Items f, g and h are redundant in the agreement you've been given unless for some reason you are paying the council tax and utilities on behalf of the tenant otherwise it's down to the council or utility companies to chase the tenant for monies owed, not for you to deduct money from the deposit to pay the council or utility providers. 

Thank you.

propertyrental

I can't see any reason to specify an order.

If there is damage, missing items, arrears or whatever, which are justified, either

1. the total cost is within the amount of the deposit and the LL claims the total cost, or
2. the total cost exceeds the deposit in which case the LL can choose to either 
a) just claim the full deposit, justified to the arbitrators (assuming the tenant contests) on the basis of the most likely tobe accepted by the arbitrators,or
b) uses the small claims process (moneyclaim online) to claim the full amount

ArbitraryRandom

Putting my devil's advocate hat on: 

Should the amount of deductions you need to may be greater than the sum of the deposit, then you would have the option to pursue the remainder via small claims. Some losses might be easier to prove or quantify perhaps, therefore there might be a slight (theoretical) preference to those items being deducted last? 

In practice, that would assume the adjudication process of whichever deposit protection scheme you are using has a lower evidence requirement. And that you would bother to take the tenant to court for any residual debt. 

theartfullodger

After the term?  So landlord can make deductions immediately at end of fixed term even if tenant has stayed, continuing periodic, as Thatcher provided tenant may?  Agent doesn't understand the law.  

No surprise, in England a lettings agent requires no quality, no training, no criminal records check.  The whole office may be completely staffed by ex prisoners from Brixton where they served time for fraud and GBH. Notes, legally ok!

Other countries handle this better.

haveabreak

theartfullodger said:

After the term?  So landlord can make deductions immediately at end of fixed term even if tenant has stayed, continuing periodic, ....etc

The Term: The length of the letting agreed in this Agreement including any extension or continuation or any statutory periodic tenancy arising after expiry of the original Term.

What is your view in regard to the question on the OP?